Marital Breakdown? What can I do with my mortgage?

If Marital Breakdown is looming what happens to the mortgage? Can you keep the house? Can you refinance your mortgage without the other party?

There is so much to consider when dealing with a divorce so if you don’t feel like reading and just want to talk, or you are just reading for the sake of research as an Alberta Mortgage Broker I would be more than happy to talk or text through your troubles.  If you just want to know my thoughts and some facts, just keep on reading.

You don’t have the 15% to refinance with the new rules, or your spouse wants to be paid out, or maybe they are threatening a lien on the house.   There is hope after all.   CMHC has some unwritten rules when it comes to this, and knowing a Calgary Mortgage Broker who speaks with them all the time can save you time, stress, and pressure.

CMHC has a program where they will under certain circumstances take your loan back up to 95% Loan to Value (LTV). The main advantage of this new possibility is that you will not be mandatory to come up with 15% equity to refinance.  You can buy out your spouse with the difference, or you may be able to use and option to receive a ‘gift’ of 5% of the value of the home.  This comes from your ex-spouse which acts as your new down payment. This does have its advantageous for payout of joint debt or paying off high interest rate credit cards, and will make the separation easier to handle and hopefully keeping your credit rating intact as possible.

• You must have good credit
• There must already be a finalized Separation Agreement in place.
• Gift letter for the 5% gifted equity by the spouse who is leaving the home
• A statutory declaration must be signed 

 

If you are looking to refinance your mortgage due to a marriage breakdown and are still not sure what to do give me a call or text.  Being a trusted Alberta Mortgage Broker is not always about the best mortgage rates, its about helping people stay in their home.